Manager

A manager is a person responsible for supervising and motivating employees

and for directing the progress of an organization. An example of a manager is
the person who is in charge of customer service, who deals with customer
disputes and who oversees and supervises customer service agents.

Organization
A consciously coordinated social unit, composed of two or more people, that
functions on a relatively continuous basis to achieve a common goal or set of
goals.

Functions of Management- see PPT and draw diagram and on page 7 of book
1. Planning
2. Organizing
3. Controlling
4. Leading
5. Staffing

1. Planning

It is the basic function of management. It deals with chalking out a future

course of action & deciding in advance the most appropriate course of
actions for achievement of pre-determined goals.
According to KOONTZ, “Planning is deciding in advance - what to do,
when to do & how to do. It bridges the gap from where we are & where
we want to be”. A plan is a future course of actions. It is an exercise in
problem solving & decision making.
Planning is determination of courses of action to achieve desired goals.
Thus, planning is a systematic thinking about ways & means for
accomplishment of pre-determined goals. Planning is necessary to ensure
proper utilization of human & non-human resources. It is all pervasive, it
is an intellectual activity and it also helps in avoiding confusion,
uncertainties, risks, wastages etc.
2. Organizing

It is the process of bringing together physical, financial and human

resources and developing productive relationship amongst them for
achievement of organizational goals.
According to Henry Fayol, “To organize a business is to provide it with
everything useful or its functioning i.e. raw material, tools, capital and
personnel’s”. To organize a business involves determining & providing
 human and non-human resources to the organizational structure.
Organizing as a process involves:

 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
 Coordinating authority and responsibility relationships.
3. Staffing

It is the function of manning the organization structure and keeping it

manned. Staffing has assumed greater importance in the recent years due
to advancement of technology, increase in size of business, complexity of
human behavior etc.
The main purpose o staffing is to put right man on right job i.e. square
pegs in square holes and round pegs in round holes. According to Kootz
& O’Donell, “Managerial function of staffing involves manning the
organization structure through proper and effective selection, appraisal &
development of personnel to fill the roles designed un the structure”.
Staffing involves:

 Manpower Planning (estimating man power in terms of searching,

choose the person and giving the right place).
 Recruitment, Selection & Placement.
 Training & Development.
 Remuneration.
 Performance Appraisal.
 Promotions & Transfer.
4. Directing

It is that part of managerial function which actuates the organizational

methods to work efficiently for achievement of organizational purposes.
It is considered life-spark of the enterprise which sets it in motion the
action of people because planning, organizing and staffing are the mere
preparations for doing the work.
Direction is that inert-personnel aspect of management which deals
directly with influencing, guiding, supervising, motivating sub-ordinate
for the achievement of organizational goals. Direction has following
elements:

 Supervision
 Motivation
  Leadership
 Communication
5. Controlling

It implies measurement of accomplishment against the standards and

correction of deviation if any to ensure achievement of organizational
goals. The purpose of controlling is to ensure that everything occurs in
conformities with the standards. An efficient system of control helps to
predict deviations before they actually occur.
According to Theo Haimann, “Controlling is the process of checking
whether or not proper progress is being made towards the objectives and
goals and acting if necessary, to correct any deviation”.
According to Koontz & O’Donell “Controlling is the measurement &
correction of performance activities of subordinates in order to make sure
that the enterprise objectives and plans desired to obtain them as being
accomplished”. Therefore controlling has following steps:

 Establishment of standard performance.

 Measurement of actual performance.
 Comparison of actual performance with the standards and finding
out deviation if any.
 Corrective action.

For example, a manager can’t create a cohesive plan without understanding how
to organize resources and delegate staff. The plan must necessarily involve how
they intend to lead the team and how they’ll measure if goals have been met and
control for contingencies.

MINTZBERG’S MANAGERIAL ROLE- page 4 & 5 of book and PPT.

MANAGEMENT SKILLS/ COMPETENCIES- Page 7 and 8 of book

Technical skills
As the name of these skills tells us, they give the manager knowledge and
ability to use different techniques to achieve what they want to achieve.
Technical skills are not related only for machines, production tools or other
equipment, but also they are skills that will be required to increase sales, design
different types of products and services, market the products and services, etc.
Technical skills are most important for first-level managers. For example, when
it comes to the top managers, these skills are not something with high
significance level. As we go through a hierarchy from the bottom to higher
levels, the technical skills lose their importance.
 
Conceptual skills
Conceptual skills present knowledge or ability of a manager for more abstract
thinking. That means he can easily see the whole through analysis and diagnosis
of different states. In such a way they can predict the future of the business or
department as a whole.
For example, conceptual skills are vital for top managers, less critical for mid-
level managers and not required for first-level managers. As we go from the
bottom of the managerial hierarchy to the top, the importance of these skills will
rise.
 
Human or interpersonal managerial skills
Human or interpersonal management skills present a manager’s knowledge and
ability to work with people. One of the most critical management tasks is to
work with people. Without people, there will not be a need for the existence of
management and managers.
For example, these skills enable managers to become leaders and motivate
employees for better accomplishments. Additionally, they help them to make
more effective use of human potential in the company. Simply, they
are essential skills for all hierarchical levels in the company.

Effective Versus Successful Managerial Activities (Luthans)- make pie chart

made on slide 14 of PPT
Luthans (1988), on the basis of his study, found that all managers engage in four
managerial activities.
1. Traditional management— This activity consists of planning, decision
making, and controlling. For example, the average manager spent 32 percent of
his or her time performing this activity, whereas successful managers spend
13% and effective managers spend 13% of their time in this activity.
2. Communication—This activity consists of exchanging routine information
and processing paperwork. For example, the average manager spent 29 percent
of his or her time performing this activity while successful manager spends 28%
and effective managers spend 44% of their time in this activity.
3. Human resource management—This activity consists of motivating,
disciplining, managing conflict, staffing, and training. For example, the average
manager spent 20 percent of his or her time performing this activity, while
successful manager spends 11% and effective managers spend 26% of their
time in this activity.
4. Networking—This activity involves socializing, politicking, and interacting
with outsiders. For example, the average manager spent 19 percent of his or her
time performing this activity, while successful manager spends 48% and
successful manages spend 11% of their time in this activity.
It was found that successful managers spent more time and effort in socializing,
interacting and networking. They did not spend much time to the traditional
management activities or to the human resource management activities
(Luthans, 1988).

Organizational Behaviour
Organizational behavior is the academic study of how people interact within
groups and its principles are applied primarily in attempts to make businesses
operate more effectively. The study of organizational behavior includes areas
of research dedicated to improving job performance, increasing job
satisfaction, promoting innovation, and encouraging leadership and is a
foundation of corporate human resources. The Hawthorne Effect, which
describes the way test subjects' behavior may change when they know they are
being observed, is the best-known study of organizational behavior. Examples
of these behaviors include issue selling, taking initiative, constructive
change-oriented communication, innovation, and proactive socialization

Complementing Intuition with Systematic Study

Whether you’ve explicitly thought about it before or not, you’ve been “reading”
people almost all your life by watching their actions and interpreting what you
see, or by trying to predict what people might do under different conditions. The
casual approach to reading others can often lead to erroneous predictions, but
using a systematic approach can improve your accuracy. Underlying the
systematic approach is the belief that behavior is not random. Rather, we can
identify fundamental consistencies underlying the behaviour of all individuals
and modify them to reflect individual differences. These fundamental
consistencies are very important. Why? Because they allow for predictability.

OB AND THE BEHAVIOURAL SCIENCES- pg 10 and 11 of book

Contingency theory in Organisational Behaviour

A contingency theory is an organizational theory that claims that there is no
best way to organize a corporation, to lead a company, or to make
decisions. Instead, the optimal course of action is contingent (dependent) upon
the internal and external situation.
CHALLENGES AND OPPORTUNITIES OF OB

1. Improving People’s Skills: – Technological changes, structural

changes, environmental changes occur at a rapid pace in the business
sector. Unless employees and executives are equipped to have the
necessary skills to adapt to those changes, targeted goals may not be
achieved in a timely manner. These are two different categories of
skills – managerial skills and technical skills. Some of the managerial
skills include listening skills, motivational skills, planning and
organizing skills, leading skills, problem solving skills, decision
making skills. These skills can be enhanced by conducting a range of
training and development programmes, career development
programmes, induction and socialisation.
2. Improving Quality and Productivity: – Quality is the extent to
which customers or users believe that the product or service exceeds
their needs and expectations. For example, a customer who buys an
automobile has a certain expectation, one of which is that the
automobile will start when the engine is started. If the engine does not
start, the customer’s expectations will not be met and the customer will
find the quality of the car to be poor. The major dimensions of quality
are as follows: –
o Performance: -Primary rating characteristics of a product
such as signal coverage, audio quality, display quality, etc.
o Features: – Secondary features, additional features, such as
calculator, and alarm clock features in the handphone
o Conformity: – meeting specifications or industry standards,
the degree of workmanship to which the product’s design or
operating characteristics match pre-established standards
o Reliability: – The probability of a product falling out within a
specified period
o Durability: – It is a measure of the life of a product having
both economic and technical dimensions.
o Services: – Problem and complaints resolution, Ease of
repair
o Feedback: – Human-to-human interfaces, such as Courtesy
of Dealer « Aesthetics: Sensory features such as exterior
finishes.
o Reputations: – Past performance and other abstractions, such
as being in the first place.
More and more managers are facing challenges to meet the specific needs of
customers. To improve quality and productivity, they are implementing
programs like total quality management and reengineering programs that
require extensive employee participation.

3. Total Quality Management (TQM): – Total Quality

Management (TQM) is a philosophy of management driven by
continuous achievement of customer satisfaction through continuous
improvement of all organizational processes. The components of TQM
are: –
o an intense focus on the customer,
o concern for continuous improvement,
o improving the quality of what the organization does,
o accurate measurement and,
o Empowerment of employees.
4. Managing Workforce Diversity: – It refers to employing different
categories of employees who are heterogeneous in terms of gender,
caste, ethnicity, affiliation, community, physically disadvantaged,
elderly people etc. The primary reason for employing a heterogeneous
range of employees is to harness talent and potential, harness
innovation, to achieve synergistic effects among the divorced
workforce. In general, employees wanted to maintain their personal
and cultural identity, values, and lifestyle, even if they were working in
the same organization with similar rules and regulations. The biggest
challenge for organizations is to become more accommodating to
different groups of people by addressing their different lifestyles,
family needs and work styles.
5. Responding to Globalization: – Today’s business is mostly market-
driven; wherever the demands exist irrespective of distance, locations,
climatic conditions, the business operations are expanded to gain their
market share and to remain in the top rank, etc. Business operations are
no longer restricted to a particular locality or region. The company’s
products or services are spreading across the nations by using mass
communication, internet, fast transportation etc. More than 95% of
Nokia handsets are sold outside their home country of Finland,
Japanese cars are being sold in different parts of the world, Sri Lankan
tea is exported to many cities across the world, Garment products from
Bangladesh are exported to USA and EU countries. Executives of
multinational corporations are very dynamic and move more
frequently from one subsidiary to another.
6. Empowering People: – The main issue is to delegate more power and
responsibility to the lower-level cadre of employees and to provide
more freedom to make choices regarding their schedules, operations,
procedures and method of solving problems related to their work.
Encouraging employees to participate in work-related decisions will
 significantly increase their commitment to work. Empowerment is
defined as putting employees in charge of the work they do by gaining
some kind of ownership. Managers are going far ahead by allowing
employees complete control over their work. The movement implies
constant change, with an increasing number of organizations using
self-managed teams, where workers largely work without bosses.
7. Coping with Temporariness: In recent times, product life cycles are
shortening, operating methods are improving, and fashion is changing
very rapidly. In those days, managers were required to undertake major
transformation programs once or twice a decade. Today, change is an
ongoing activity for most managers. The concept of continuous
improvement refers to continuous change. In the old years, there used
to be a long period of stability and sometimes interrupted by a short
period of change, but at present, the change process is an ongoing
activity due to competition in developing new products and services
with better features. Everyone in the organization today is facing
permanent impermanence. The actual work to be done by the workers
is in a permanent state of flow. Hence, workers need to constantly
update their knowledge and skills to meet the requirements of the new
job.
8. Stimulating Innovation and Change: – Today’s successful
organizations must foster innovation and master the art of change;
Otherwise, they will become candidates for extinction over time and
disappear from their field of business. Wins will go to organizations
that maintain flexibility, continually improve their quality, and beat the
competition with a constant stream of innovative products and services
in the market place. For example, Compaq was successful in making
more powerful personal computers than EBNM or Apple for the same
or less money, and in getting their products to market faster than larger
competitors.
9. The Emergence of E-Organisation & E-Commerce: – It refers to
business operations involving electronic mode of transaction. This
includes presenting products on websites and filling orders. Most of
the articles and media attention given to using the Internet in business
has focused on online shopping. The process involves marketing and
selling of goods and services on the Internet. In e-commerce, the
following activities are happening quite frequently – with a
tremendous number of people shopping on the internet, business
houses setting up websites where they can sell goods, following
transactions such as receiving payments and fulfilling orders.
10.Improving Ethical Behavior: – Complexity in business operations is
forcing the workforce to face ethical dilemmas where they need to
define right and wrong conduct to carry out their assigned activities.
 For example, should employees of a chemical company blow the
whistle if they uncover that its untreated waste in the river is polluting
its water resources? Do managers give an inflated performance
appraisal to an employee of their choice, knowing that such an
appraisal could save that employee’s job? The basic rules governing
the components of good ethical behavior are not clearly defined,
separating right things from bad behavior becoming more blurred. It
has become a common practice to follow unethical practices such as
successful executives who use insider information for personal
financial gain, employees in competing businesses participating in
mass cover-ups of defective products, etc.
11.Improving Customer Service: – OBs can contribute to improving
organizational performance by showing how employee attitudes and
behaviors are correlated with customer satisfaction. In that case, the
service must first be production-oriented, using technological
opportunities such as computers, internet, etc. We also need to provide
sales service and also after-sales service in order to improve customer
service.
12.Helping Employees Balance Work-Life Conflicts: – In the 1960s or
1970s, normal workers showed up at the workplace from Monday to
Friday and worked 8 or 9 hours a day. Workplaces and hours were
specified. This is no longer true for a large part of today’s workforce.
Employees are increasingly complaining that the line between work
and non-work time has become blurred, leading to personal conflict
and tension. Several forces have contributed to the blurring of the lines
between the working life and personal life of the employees, such as
o The creation of global organizations means that their world
never sleeps. For example, at any given time and on any
given day, there are thousands of General Electric employees
working somewhere.
o Communication technology allows employees to do their
jobs at home, in their cars or on the beach in Cox’s Bazar.
o Organizations are asking employees to work longer hours.
o In the end, fewer families have only one breadwinner.
Today’s married worker is usually part of a couple with a
dual career. This makes it difficult for married employees to
find time to meet commitments to the home, spouse,
children, parents, and friends.
o Today’s married worker is usually part of a couple with a
dual career. This makes it difficult for married employees to
find time to meet commitments to the home, spouse,
children, parents, and friends. Employees are increasingly
 recognizing that work is squeezing personal lives and they
are not happy with it.
13.Flattening World: Thomas Friedman’s book The World Is Flat: A
Brief History of the Twenty-First Century outlines that the Internet has
“flattened” the world and created an environment in which more
access to information is needed. There is a level playing field. This
access to information has led to an increase in innovation, as
knowledge can be shared quickly across time zones and cultures. It has
also created intense competition, as the pace of business is getting
faster and faster all the time. In his book Wikinomics, Don Tapscott
notes that large-scale collaboration has changed the way people work,
how products are made, and the ability of people to work without ever
meeting.

BASIC OB MODEL- page 20 of book

Dependent variable- page 22
A response that is affected by an independent variable (what organizational
behavior researchers try to understand).
 Productivity- A performance measure that includes effectiveness and
efficiency.
 Effectiveness- Achievement of goals.
 Efficiency- Meeting goals at a low cost.
 Absenteeism- The failure to report to work.
 Turnover- The voluntary and involuntary permanent withdrawal from an
organization.
 Deviant Workplace Behavior- Voluntary behavior that violates
significant organizational norms and thereby threatens the well-being of
the organization and/or any of its members.
 Organizational citizenship behavior (OCB)- Discretionary behavior that
is not part of an employee’s formal job requirements, but that
nevertheless promotes the effective functioning of the organization.
 Job satisfaction- A general attitude (not a behavior) toward one’s job; a
positive feeling of one's job resulting from an evaluation of its
characteristics.

Independent Variables- page 21 of book

Evolution of field of Organization behavior discipline- leading

contribution

5 MODELS OF ORGANIZATIONAL BEHAVIOUR

1. Autocratic Model
The autocratic model depends on power. Those who are in command must have
the power to demand “you do this-or else,” meaning that an employee who does
not follow orders will be penalized. In an autocratic environment the managerial
orientation is formal, official authority. This authority is delegated by right of
command over the people to it applies. Under autocratic environment the
employee is obedience to a boss, not respect for a manager. The psychological
result for employees is dependence on their boss, whose power to hire, fire, and
“perspire” them is almost absolute. For example, boss pays minimum wages
because minimum performance is given by employees. They are willing to give
minimum performance-though sometimes reluctantly-because they must satisfy
subsistence needs for themselves and their families. Some employees give
higher performance because of internal achievement drives, because they
personally like their boss, because the boss is “a natural-born leader,” or
because of some other factor; but most of them give only minimum
performance.

2. Custodial Model- PPT

3. The Collegial Model- PPT
4. The System Model
5. The Supportive Model
Unlike the two previous approaches, the supportive model emphasis on a
motivated and aspiring leader. There is no space for any control or authoritative
power in this model or on the incentives or reward schemes, but it is simply
based on motivating staff through the establishment of the manager and
employee relationship and the treatment that is given to employees on a daily
basis. Quite contrarily to the autocratic mode, it states that employees are self-
motivated and can generate value that goes beyond their day to day role or
activity.  But how the employees get self–motivated? By creating a positive
workplace where they are encouraged to give their ideas, there is some kind of
“buy-in” in the organizational behavior setup and the direction that it takes. One
of the key aspects of the supportive model has been studies conducted at the
Hawthorne Plant of Electric in the 1920s and 1930s. Elton Mayo and F.J
Roethlisberger led the study to implore human behavior at work by
implementing and placing keen insight into the sociological, psychological
perspective in the industrial setup. They concluded that a single organization is
a social system, and a worker is an important component of the system. They
found that a worker is not a tool that can be used in any way but has its own
behavior and personality and needs to be understood. They suggested
that understanding group dynamism, including supportive supervision, is
imperative to make workers contribute and be supportive.

Through the leadership organizations give the space and climate for the
employees to develop, form their own thinking and take the initiative. They
would take responsibility and improve themselves.  Managers are oriented
towards supporting the employees to give performances and not just support
them through employee benefits as done in the custodial approach. The
supportive model is widely accepted chiefly in the developed nations where the
needs of the employees are different as it fulfills many of the employees
emerging needs.  This approach is less successful in the developing nations
where the social and economic need of the working class is different.  In short,
in the supportive model, money is not which retain the satisfaction of the
employees, but it is a part of the organization’s life that has been put to the use
and makes other people feel wanted.